Copper Fox delays, Market attacks
On a day when copper is up and Copper Fox is taking a 15% haircut, I dug in to find the source of the matter. Apparently, CPXF will be behind schedule for releasing its resource estimate for the Paramount and Liard zones at Schaft Creek, as you can read here. The setback is a result of staffing problems by Tetra Tech, who is contracted to finish the mine plan. Without a mine plan, the resource estimate can't be completed. The new estiamted deadline is late summer of 2012.
Correct me if I am wrong, but this seems like a fairly big setback for something that was supposed to be completed in 2 weeks. I really don't know how this oversight could occur....insight anyone? Would I be overly harsh to say that this is as much Tetra tech's fault as it is the fault of Copper Fox's upper management for nto sdtaygin on top of Tetra Tech? It seems that way to me, but I am new in my business management training.
In the end, I'm sure they will overcome this obstacle, and sh*t happens all the time. Copper fox is also the newest copper mine in an era when all the copper mines are nearing the end of their prime, so once Copper fox gets rolling, they're poised for real gains. You migt be say, Damn Jbay this is a buying opportunity, and it could be. But, my concern/post emphasis here is management's managing of contracts. How does a staffing issue so close to a deadline finally become a factor? How could this not have been apparent sooner?It isimportant to note that I am not atacking management here (though it may seem like that), but rather trying to understand how this oversight happens.